Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005–2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006–2009. The resu...

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Bibliographic Details
Published in:Journal of business ethics
Authors: Valkila, Joni (Author) ; Haaparanta, Pertti (Author) ; Niemi, Niina (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2010
In: Journal of business ethics
Year: 2010, Volume: 97, Issue: 2, Pages: 257-270
Further subjects:B Nicaragua
B Farmers
B retail prices
B Finland
B Consumers
B value chain
B Labor
B Fair Trade
B Coffee
B Cooperatives
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Description
Summary:This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005–2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006–2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-010-0508-z